Arla Expands Milk-Based Portfolio With Launch of Protein Packed, Energy, Fruit and Tea Lines

31 Aug 2016 --- In a bid to include healthier alternatives and expand its portfolio, Arla has unveiled a series of milk-based drinks with fruit, tea and an energy drink rich in protein.

The new products are part of Arla’s Good Growth 2020 Strategy to maximize opportunities outside of standard liquid milk and triple the revenue of milk-based beverages from €230 million (US$256 million) in 2015.

The drinks include new flavors of Arla protein milkshakes with 20g of protein in each bottle, a new Pucko chocolate milk from the Cocio joint venture, Matilde fruit flavored milkshakes and sport energy drinks with 40 percent extra protein. They are all milk-based with natural ingredients. 

“By addressing the beverage market more strategically, we can double the size of our playing field for liquid milk products and capture significant growth opportunities for Arla. Through branded milk-based beverages we can create more value for our farmers,” says Arla’s Hanne Sondergaard, executive vice president for global marketing & innovation. 

Part of the drive to tap into alternative milk drinks is linked to the modern urban lifestyle which has led to more consumers snacking outside the home and wanting healthy and convenient alternatives. 

Arla believes with more people living in bigger cities mealtimes are blurring and there is an increase in demand for healthy on-the-go products without sacrificing on nourishment. In addition, Arla can sell these products through new sales channels. 

“We have a big opportunity to provide people with nourishment when they need it, based on the natural goodness of Arla milk. Our milk should not only be enjoyed from liter-sized packages bought in supermarkets, it should also be available as a tasty beverage on the go. We will expand our portfolio to include products that will nourish, fuel or refresh you - whenever and wherever you need it.” 

“This will create new sales opportunities for us in places such as convenience stores, petrol and train stations, gyms, workplaces, cafes, and bars, where we have little presence today,” adds Sondergaard.”

Arla’s current innovation focus includes developing ambient beverages where milk, yogurt or whey is the main content. Flavors, proteins, grains or fibers can then be added and the drink can be carbonated. The company also wants to think beyond dairy by using milk, yogurt or why as an ingredient in other popular beverages including sports drinks, water, coffee and tea. 

According to Arla, the global market for milk-based beverages is approximately €100 billion (US$111 billion) in annual retail sales and is growing much faster, particularly outside of Europe. 

Its ambition for 2020 is to be the leading provider of milk-based beverages in northern Europe, one of the leading European players in Asia, the Middle East and Northern Africa. Arla will test the European market in the UK during 2017 and develop a model for distribution, sales and marketing that can be rolled out elsewhere.